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The holders of Xenron Corporation's bond with a face value of $1,000 can exchange that bond for 35 shares of stock. The stock is selling for $22.00. What would the conversion price and conversion ratio be if Xenron had a 3 for 1 stock split?
Excess Capacity
The situation in which a company can produce more products or services than currently demanded by the market.
High Fixed Costs
A financial condition where a business or operation has a high proportion of expenses that do not vary with the volume of production or sales.
Low Variable Costs
Operating conditions where costs that vary with production levels, like materials and labor, are minimal.
Mass Customization
A production strategy that combines the efficiency of mass production with the customization typically offered by bespoke services.
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